Private Equity is Shaping the Next Generation of CDMOs - 1Q Health Case
Introduction
The beauty industry is no longer confined to cosmetics and skincare alone. Over the past decade, the lines between beauty and wellness have blurred, as consumers increasingly seek products that not only enhance appearance but also support overall health. This shift has fueled rapid growth in nutraceuticals, dietary supplements, and “beauty-from-within” products, creating a market where efficacy, science-backed claims, and regulatory compliance are as important as branding and packaging. As a result, even more traditional contract manufacturers (CMOs) have evolved into full-service Contract Development and Manufacturing Organizations (CDMOs), offering end-to-end solutions that extend beyond production to formulation development, testing, regulatory support, logistics, and even digital brand services.
Within this expanding CDMO landscape, some players have grown at remarkable speed through acquisitions, leveraging strategies such as vertical integration, geographic expansion, and broadening of service portfolios. KDC/ONE exemplifies this approach: originating as a Canadian contract manufacturer, it has transformed into a global powerhouse in beauty and personal care CDMOs by acquiring multiple companies across North America, Europe, and Asia. Each acquisition not only added manufacturing capacity but also specialized capabilities - from niche actives and nutraceutical expertise to advanced packaging solutions - allowing KDC/ONE to offer truly comprehensive solutions to emerging and established brands alike.
The growing attractiveness of the nutraceutical and nutricosmetic segment has not gone unnoticed by private equity, which now plays an active role in shaping the industry. Beyond merely consolidating existing players, PE firms are increasingly building new entities designed to integrate diverse capabilities under a single platform, combining speed, innovation, and scale. In Europe, 1Q Health Group illustrates this trend. Launched in late 2024 by NORD Holding through a series of strategic acquisitions, 1Q Health positions itself at the intersection of health, nutrition, and beauty. It combines pharmaceutical-grade rigor with nutraceutical and beauty supplement expertise, offering clients a one-stop CDMO solution that spans formulation, testing, manufacturing, packaging, regulatory compliance, and brand support.
1Q Health Group
1Q Health Group is a European Contract Development and Manufacturing Organization (CDMO) specializing in pharmaceuticals, nutraceuticals, and related health products. Despite its recent establishment as a group brand in 2024, the business already commands significant scale, with reported revenues of roughly €250 million in 2025 (source of data not confirmed). It has quickly positioned itself as an integrated platform capable of providing end-to-end services, from formulation and development to manufacturing, packaging, regulatory compliance, logistics, and even digital brand support.
The group was created by NORD Holding, one of Germany’s oldest private equity firms, with a clear buy-and-build strategy: acquire specialized companies across Europe, consolidate them under one structure, and rapidly build a diversified CDMO platform able to serve both emerging brands and established players.
Founding and Ownership
While 1Q Health Group was officially established in late 2024, its roots are older. NORD Holding began building the platform earlier in the same year with the acquisition of ABJ alive GmbH, a German nutraceutical specialist founded in 2010. That acquisition acted as the anchor investment and the starting point for further expansion.
The group is led by CEO Philipp Ziehr. NORD Holding provides both financial firepower and strategic oversight, while entrepreneurial leadership remains active at the subsidiary level. The timing of the platform launch is crucial: NORD Holding consolidated these earlier acquisitions under the new name 1Q Health to create a recognizable umbrella brand with scale and credibility.
Strategic Intent
The strategy behind 1Q Health is clear and familiar to private equity observers:
Acquire proven specialists in pharmaceuticals, nutraceuticals, CRO testing, and beauty health.
Integrate them into a unified, one-stop CDMO platform offering development → testing → manufacturing → packaging → marketing.
Expand service breadth and geographic reach through further add-ons.
This model seeks to capitalize on the fragmented nature of the European CDMO market, particularly in nutraceuticals and adjacent categories. By consolidating mid-sized companies, NORD Holding aims to create a player that can compete with both pharma-oriented CDMOs and emerging wellness-focused manufacturers.
Business Model and Service Scope
Value Proposition
1Q Health presents itself as a “digitally driven, direct-to-consumer CDMO (D²CDMO)”, emphasizing speed, integrated solutions, and flexibility. Its promise is summarized in its tagline: “FAST TRACK TO QUALITY.”
Service Offering
Formulation development: Pharmaceuticals, nutraceuticals, OTC, homeopathic, and veterinary products.
Manufacturing: Tablets, capsules, coated drugs, powders, granulates, softgels, syrups, and liquid forms.
Packaging solutions: Private and white label production with EU-compliant packaging.
Testing and CRO services: Provided by VivaCell, covering in-vitro and in-vivo studies, analytical method development, and claim validation.
Regulatory and QA: GMP, ISO, HACCP, IFS Food, FSSC 22000, EU organic certification.
Logistics and distribution: Warehousing, fulfillment, supply chain optimization.
Brand and marketing support: Positioning itself not just as a manufacturer, but also as a digital and commercial partner.
Revenue Streams
CDMO contracts (development and manufacturing) – high-value, recurring.
Private/white label production – higher volume, lower margin.
CRO/testing services – differentiated, especially in claim validation.
Regulatory and marketing add-ons – strengthening stickiness with clients.
Scale and Reach
Employees: ~250 across subsidiaries.
Sites: Creußen, Bad Wörishofen, Lengau, plus those added through acquisitions.
Market focus: Europe (DACH as core), with ambition for broader reach.
Acquisitions and Growth Timeline
The backbone of 1Q Health’s growth is M&A. Each acquisition has been strategic, adding specific capabilities:
ABJ alive GmbH – Acquired February 2024. German nutraceutical and dietary supplement specialist. Served as anchor platform.
HKS Health Solutions GmbH – Acquired early 2025. Added strong pharmaceutical development and manufacturing expertise.
Dronania Pharmaceuticals – Acquired Jan 2025. German CDMO specializing in the GMP production of liquid, tablet and capsule botanical supplements.
VivaCell Biotechnology GmbH – Acquired April 2025. German CRO specializing in in-vitro/in-vivo testing, significantly boosting scientific credibility and ability to substantiate product claims.
Beauty Production GmbH – Acquired August 2025. Specialist in beauty supplements and nutraceuticals, reinforcing the pharma–beauty crossover.
Interpretation: Though the group name was launched in late 2024, acquisitions both preceded and followed this moment. NORD Holding effectively seeded the group with ABJ alive, then rapidly bolted on complementary capabilities throughout 2025.
Key Ingredients, Formulas, and Capabilities
While specific formulations are not disclosed, the subsidiaries provide a strong overview of capabilities:
Pharmaceutical APIs: Solid dosage forms (tablets, hard/soft capsules, coated drugs).
Nutritional actives: Whey protein, collagen, plant proteins, amino acids.
Vitamins, minerals, and botanicals: Widely used dietary supplement actives.
Functional ingredients: Supporting sports nutrition, immunity, gut health, and beauty-from-within.
Probiotics and microbiome products: A growing area with crossover potential into cosmetics.
Veterinary and homeopathic products: Niche but regulated categories.
Benefit Areas
Immunostimulation
Diabetology/metabolic health
Women’s health
Digestive and gut health
Eye health
Neurology (cognitive/nerve health)
ENT (ear, nose, throat)
Gastroenterology
Dosage Forms
Solids: tablets, capsules, powders, granulates.
Liquids: syrups, sprays, drops.
Semi-solids: gels, creams, ointments.
Financial Performance
Revenue (2025): ≈ €250 million (converted from ₹2,108 crore reported in – not verified - Indian sources).
EBITDA/Profitability: Not disclosed.
Financial transparency: Limited – NORD Holding and management have not released public audited figures.
Interpretation: Scaling to mid-hundreds of millions in revenue within a year of launch is notable. However, profitability, margins, and customer concentration remain unknown – a critical diligence point.
Strategic Relevance
Opportunities and Strengths
1Q Health’s buy-and-build model shows where private equity sees value in CDMOs: fragmented supply chains, strong growth in nutraceuticals, and demand for end-to-end services.
The acquisition of VivaCell is particularly relevant, as it highlights the importance of claim validation – something directly applicable to nutricosmetics.
With Beauty Production in the mix, the group explicitly positions itself at the intersection of beauty and health.
Risks and Weaknesses
Integration risk: Multiple acquisitions within a short period increase the risk of operational and cultural misalignment.
Lack of transparency: While revenue is “reported”, profitability is hidden.
Overextension: Ambition to cover everything from pharma to beauty supplements could dilute focus.
Conclusion
The rise of nutraceuticals and nutricosmetics is reshaping both the beauty and wellness industries, driving demand for agile, end-to-end CDMO solutions. Players like KDC/ONE demonstrate how strategic acquisitions can rapidly scale capabilities and global reach, while private equity-backed platforms such as 1Q Health illustrate a new level of ambition: building integrated, multi-disciplinary CDMOs that merge pharma-grade rigor with beauty and nutrition innovation. As the lines between health, beauty, and wellness continue to blur, the CDMO landscape is not just consolidating - it is evolving into a space where speed, scientific credibility, and end-to-end services define the winners. For brands seeking to innovate and scale in this dynamic environment, partnering with such platforms is no longer optional; it is essential.
#Nutricosmetics #Nutraceuticals #BeautyIndustry #CDMO #PrivateEquity #Innovation
